his first at bat, second, third, giants second baseman freddie sanchez. how about the giants' backup catcher, had a memorable home run against none other than roy holiday, eli white size. [applause]

a set of banks purchase back $35 billion of loans where those banks-- fannie and freddie-- breached their representations and warrantees. already those banks have ponied up $20 billion. we found instances where banks did not disclose to investors what they knew about the mortgage securities they were selling. so there's lots of new information. >> woodruff: a lot of information to pour over. let me read you the dissenters. there were four dissenters, four republicans. three of them together came forward and among other things they say it is dangerous to conclude that this could have been avoided only if the regulators had done more and if there had been more responsible bankers. they're saying that that essentially is a simplistic conclusion that leads... is going lead to simplistic changes. >> well, sometimes simple is powerful and right. our conclusions were based on an exhaustive year-long inquiry and here's what we believe very strongly. this didn't need to happen. it was avoidable. it wasn't a force of nature. it wasn't mother nature. it wasn't a wind that blue in. lloyd blankf

. >> will you do the same on fannie mae and freddie mac? >> certainly. on the financial services committee, we will try to understand what is happening within the home ownership market place and understanding the cost and losses to the taxpayers from fannie mae and freddie mac and the legislative ethics. much of that will be dealt with with the financial services committee. we are going right into writing the legislation for that. i want to take some of these wider range issues like securitization and state bailouts and get into the nuts and bolts of it. >> one thing that has hung over a lot of these answers is the weak economy. if the economy were to get better, that would help the foreclosure issues and the state issues. gdp has gone up 3.4%. what is the republican congress going to do about the economy and jobs? is there anything you guys have for these next few months to try to address these problems directly? >> we believe the massive expense of the federal government has hurt the economy and hurt job growth. we could do more quantities in easing. w

the bank will pay $2.8 billion to fannie mae and freddie mac. fannie and freddie will use the money to buy back home loans issued by countrywide that have gone bad. oil prices rallied along with stocks on prospects of a sustained u.s. recovery in the new year. crude hit a 26-week high, rising above $92 a barrel before falling back a bit to close at $91.55 a barrel in new york trading. is facebook worth $50 billion? that's the price it's being tagged with. goldman sachs and russia's digital sky technologies invested half a billion dollars in the social networking site last week, putting facebook's total value at $50 billion. still ahead, in tonight's beyond the scoreboard: union negotiations with billions of dollars at risk. how the economy affects talks between the n.f.l. and its players union. >> susie: as we reported, encouraging economic news was the catalyst for today's market rally. american factories are running at the fastest pace in seven months. the manufacturing index of the "institute of supply management" jumped in december. also tod

i mean, i specifically asked for fun-time freddie number 3, and they sent fun-time freddie number 11,less, and everybody knows that. he's clearly got a drink problem. his hands were shaking so much he could barely make the balloon animals. you know, i don't think i've ever seen kids go quite that berserk. i know, and at the school gate this morning brad's mum couldn't look me in the eye. i saw brad at football. he looks... okay. yeah, because she's combed his fringe over the wound. at least now he's got a healthy respect for first-floor windows and gravity. it's all part of the learning curve. learning plummet. ( phone ringing ) hello. oh, hi, jane. no, alexa's fine, yeah. "you'll be with us shortly." where are you now? you're just leaving your own house. well, that's going to take more than ten minutes at this time of day, jane. it's rush hour, isn't it? no, no, no, no. no sweat. no sweat. we'll, uh... we'll just see you when we see you. cheesy brain. gosh, that was fast! do you know what? i've just found another letter that i meant to post. could you be really, really, really grown-

fannie mae and freddie mac adopted some of the standards for their mortgages. the indirect effect has been great. some people talk about the number of foreclosures. if you look of the total number of modifications entered into since april of 2009 either under hamp or other programs, it does outpace foreclosure sales, completions by two-one. it is not enough. i think we are making this crisis better. >> my time is up. >> the chair recognizes the man from oklahoma for five minutes. >> i just want to get some clarifications. i am aware of some limitations that dodd-frank is placed on tarp and the boundaries of the new programs. is treasury willing to assure us today that there is no intention that any tarp funds will be used for state pension bailouts or state government bailouts? >> yes, sir pmi terrifi. >> terrific, you detail some of the numbers. the $410 billion, we have received back $320 billion. approximately one under $66 billion remains outstanding. we are missing about $9 billion? can you re-submit another report on that? >> i would be happy to do that.

his first at bat, second, third, giants second baseman freddie sanchez. how about the giants' backup catcher, had a memorable home run against none other than roy holiday, eli white size. [applause] in game four, he hit a home run, and that pretty much did the rangers in. he is the capture of the giants. buster posey. [applause] how about giants infielder ryan rohlinger? ryan. in game four of the national championship series, this was one of the great post-season games ever played in major- league history and one of the great games of this post season. he cut down the phillies' carlos ruiz with an incredible grow, outfielder aaron rowand. [applause] i do not think any giants fan is ever going to forget that night. rockets were in san francisco. gimenez were on the mound, and his mad-to help win a critical game, outfielder darren ford. ladies and gentlemen, i have only one phrase for the next giants player

. >> what about the fannie mae /freddie mac has story? number one, we do not know much about them anymore. you do not see much coverage -- you never see what is going on inside. >> what fannie mae and freddie mac did was part of the boom, and again, they assumed that the mortgage climate was less risky than it turned out today. i do not think they would have follow the policies that they did under different circumstances. these institutions were created by congress to promote home ownership and promote the housing industry. they were extremely thinly capitalized, meaning they had very small capital bases for trillions of dollars of lending. the assumption was that their losses were going to be minimal. they helped power the housing bubble, but they were not the only force powering the housing bubble. the same practices were followed in the private sector as well. so the argument that now people are having, which is that it was all fannie and freddie's fault or all the private- sector's fault, in my view is a false dichotomy. they both wer

think the political compromise step forward should be to really disentangle fannie and freddie from the taxpayer. for federal support. did my very well mean ending these institutions. my ideal policy, however, is to either burned or raise these buildings to the ground. i am not dogmatic about which method. put a sign saying, these are the wages of sin. you're never going to get to my right. i think the bleated hostility in the book toward adjustable-rate mortgages and interest-rate -- interest-only loan is unjustified released not justified by the argument presented in the book. at think that in some circumstances for some people who know what they're getting into is these sorts of mortgages can make sense and pork out fine. and biased because of speaking in both cases from personal experience. on oil into policy, although the rhetoric of addiction is popular and a bipartisan spirit and not sure it is app of it. you know, we don't typically think of something that is cheap and useful and therefore used in great quantity as something that we are addicted to. in that think that there is a

eliminate the biggest force in opposition to republicans own is blaming unions for fannie mae and freddie bad for the economic downturn but there was a pattern all right what we're saying is that while fannie mae and freddie mac. and the economic data of the past two years is not the result of the state pension the state budget crisis you could have seen these going back five years looking at these accounting sheets you could have seen these coming it's now just coming to a head because lawmakers have been kicking the can down the road and so. anyway you know it is it sure you may have seen this coming but who was supposed to see it coming was it supposed to be the workers who trusted their pensions to someone else that was investing them or the people they were doing at the first place alan greenspan i mean look at alan greenspan he was completely asleep at the switch we saw an eight trillion dollar housing bubble this wasn't the fault of some sort of worker in pennsylvania who was making thirty thousand dollars a year this was a fall of the government regulators who are in bed with wall

but the new ones are telling them, if you don't want one and freddie your house, we will put it in front of your house. -- if you don't want one in front of your house, will put it in front of your house. we have not found any volunteers yet. they're usually on the corner, which is the worst place to put a piece of equipment like that, getting and the way of handicap access, but that is the way they are done. they're doing a better job this time because they are notifying you entellus give -- there notifying you and they are telling you that if you don't like it, we will put it somewhere else. than any other public comment? seeing none, commissioners, the matter is before you. commissioner hwang: consistent with my vote before, and for the same reasons, i would move to grant jurisdiction in this case. >> any other commissioner comments before we call role? seeing none, if he could call the roll, please. >> the motion is from commissioner hwang to grant jurisdiction request. on that motion -- [roll call vote] the vote is 4-0, jurisdiction is granted and a new five-day a p appealeriod -- a

turning to other areas of the book, on fannie and freddie my principal disagreement like a lot of reform proposals i don't think this one goes far enough. they talk about -- and a lot of places they talk about their ideal policies and what sort of the political compromised step forward should be. i think the politically compromised step forward should be to really disentangle fannie and freddie from the taxpayer. and from federal support, a step that might very well mean ending these institutions. my ideal policy, however, is to either burn or raze these buildings to the ground. i'm not dogmatic which method, salt the earth and then put a sign there saying these are the wages of sin. >> and you thought i was victorian. >> i think the blanket hostility in the book toward adjustable rate mortgages and interest rate -- excuse me, interest-only loans is unjustified or not justified by the argument presented in the book. i think that in some circumstances for? -- for some people who know what they are getting into, these mortgages work fine. i'm biased here because i'm speaking both from pers

host: what about fannie and freddie?they come in to blame, but they are less blamed the and some republicans would like. the report says that they contributed to the pressures in the system, but were not the primary cause. this finding, in particular, is likely to aid their conservative republicans who think that government housing policy, and the use of these two government- backed, but the extensively private entities to support the mortgage market was a major part of the factor. host: is that what they are are doing today? guest: there are less focused on fannie and freddie than the last republican. he has his own 99-page dissent upset government housing policy and fannie and freddie. host: what do these republicans are you? what are they saying? guest: beige book housing bubbles. they look at macro-economic forces that are internationally and -- that are international. capital needed a place to go. the u.s. headed deep, liquid financial markets with mortgage- backed securities. money came crashing into the united sta